SECURITY RISK AND SURVIVAL STRATEGY OF POS BUSINESSES IN IBADAN METROPOLIS

Abstract

Point-of-Sale (POS) technology has been widely adopted for financial transactions across the world and now forms the basis for the cashless policy in Nigeria. However, this widespread use of POS services has created more risk for operators. Related studies focused on the emergence and adoption of POS as a technology, yet there are few studies on the incorporated strategies of operators amidst security risk in Ibadan Metropolis.  The study, therefore, took a critical look at the security risk and adaptive strategies deployed by POS operators in Ibadan metropolis.  Routine Activity theory provided the theoretical framework for the study, while the descriptive design was adopted. Ibadan was purposively selected due to its status as one of Nigeria's most populous and dynamic economies, where the utilization and acceptance of cashless payment systems have increased, resulting in a higher level of risk associated with POS operations. The purposive sampling technique was used to sample 384 POS operators and users. Ten (10) in-depth interviews were conducted with POS business owners and operators who had prior experience and knowledge of POS security risks. Qualitative data were content and thematic analyzed while the quantitative data were analyzed with SPSS in line with tables.  The socio demographic profile indicates that respondent between the ages of 18 and 39 are the primary users and operators of POS. while the literate are most prone to using POS. The manifestations of POS associated security risk are data breaches, fraud, theft, with the nature and incidences expressed through the use of social engineering skills, counterfeiting of currency. The use of counter social engineering skills like being smart and knowledgeable of the trick’s perpetuators use and use of security protocols were identified as the adaptive strategies used by POS operators to address the associated issues. The study, therefore recommends establishing a safe and secure environment with robust security measures, increasing awareness of risks and measures, provision of good insurance policy to cater for financial loss in case of fraud and theft occurrence, loan assistance to improve robust security measures at POS outlet, and providing good regulations to guide the conduct of both users and operators. Keywords: Point of Sale (POS), security risks, adaptive strategies, security measures, terminals